What is the value of one such bond

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1. An issue of $1,100 face value, 8% coupon bonds that mature in 20 years

What is the value of one such bond if investors require a rate of return of 7%? ___________

2. An issue of $900 face value, 9% coupon bonds that mature in 25 years. 

Calculate the price of these bonds 14 years from now if market rates at that time are at 7%. ____________

3. An issue of $1,200 face value, zero coupon bonds which mature in 23 years. 

What is the value of one such bond if investors require a rate of return of 6%? ____________

4. An issue of $1,100 face value, 7% coupon bonds which mature in 11 years. 

Calculate the bond's yield-to-maturity if its current market price is $1,360. ___________

5. An issue of 5% preferred stock with a par value of $80. 

Calculate the price of one share of such stock when investors require a rate of return of 7%. ___________

6. An issue of $7 preferred stock with a par value of $60.  

Calculate the yield on such stock if its market price is $35. __________

7. An issue of common stock that paid an annual dividend last year of $4. 

Calculate the value of one share of this stock to an investor who requires a 15% rate of return and who forecasts that the company's dividends will grow at a constant annual rate of 5%. ___________

8. An issue of common stock that paid an annual dividend last year of $4.60, and is currently priced at $57 per share. 

Calculate this stock's current dividend yield for the coming year if investors anticipate the company's dividends to grow for the foreseeable future at a rate of 5%. _____________

9. An issue of common stock that paid an annual dividend last year of $11.30, and is currently priced at $82 per share. 

       Calculate this stock's capital gains yield if investors anticipate the company's dividends to grow for the foreseeable future at a rate of 7%. _____________

10. An issue of common stock that paid an annual dividend last year of $3.30 and is currently priced at $54 per share. 

Calculate this stock's total rate of return if investors anticipate the company'sdividend to grow for the foreseeable future at a rate of 8%. _____________

Reference no: EM132444222

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